What You Need Has Never Been Cheaper vs. What You Want:
- The chart below shows the ratio of Consumer Staples to Consumer Discretionary stocks is now LOWER than at the peak of the internet bubble
- Embracing emotions, the market is obsessed with IPOs, SPACs and chasing quick profits
- Kailash believes Staples offer an immensely valuable port in a storm of speculation
- Although firms like Zoom and Tesla are priced for perpetual perfection, Kailash is uncertain if they will dominate their industries for even 5 years
- In contrast – Kailash has high conviction that people will still smoke, drink, eat, clean their homes and put their kids in diapers for decades to come
See “The Case for Buying What You Know and Need” and “Income Investing: Staples & IT” for compelling historical evidence suggesting today is one of the best times in history to invest in a select group of staples.
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